TOKYO — Honda Motor has reported a 50 per cent drop in first-quarter operating profit, as a stronger yen and the impact of US President Donald Trump’s tariffs took a toll on its results, but the company raised its full-year forecast.

Japan’s second-biggest carmaker said quarterly operating profit totalled ¥244.2 billion (RM7 billion) in the April-June period, more than 20 per cent lower than the average estimate of ¥311.7 billion in a poll of seven analysts by LSEG.

Honda said the steep 27.5 per cent tariffs on US auto imports — comprised of a previous 2.5 per cent rate and a 25 per cent levy imposed by Trump in April — pulled down its operating profit for the quarter by about ¥125 billion.

But the automaker said the impact from the tariffs on its full-year operating profit was smaller than it had estimated in May. It now expects a ¥450 billion hit for the year, compared to ¥650 billion forecast previously.

The company raised its full-year operating profit forecast to ¥700 billion from ¥500 billion, and said it expected the yen to trade at a weaker rate than it had previously estimated.